Payday loans have grown in popularity over the last decade. Such loans provide almost instant relief to consumers who are facing a temporary interruption to their cashflow.
Many consumers use payday loans to cover particularly costly bills or emergency expenses. Most individuals who hold permanent employment and have bank accounts are eligible for these convenient loans.
Unlike traditional bank loans, payday loans do not generally require a credit check.
Before applying for any loans, be sure to first be aware of what types of loans are out there and which one is right for you.
How to Obtain Payday Loans, No Credit Check Required
Almost anyone who is employed on a permanent basis can receive a payday loan. Applicants must hold permanent employment; most payday loan companies will not issue loans to individuals who hold temporary or seasonal positions. Applicants must also have a bank account.
In general, it is necessary that an individual’s pay from work is deposited directly into his or her bank account in order to be approved for a payday loan.
Consumers can go about applying for a payday loan in several different ways. Customers can apply in-person at local payday company offices or can apply online via a secure form.
Before visiting a payday loan office or beginning an online application, a consumer should gather basic information regarding his or her employment. It is also important to read loan terms closely before sending in an application for a payday loan.
The majority of payday loan companies offer payday loans, no credit check required. Instead of submitting to a credit check, an applicant submits information about his or her earnings from employment.
Payday loan applications also require that an individual enter information that can be used to identify him or her. A government-issued identification number is needed to apply for a payday loan.
Consumers cannot use a friend or family member’s bank account to receive a payday loan. The bank account must be in the name of the applicant.
After providing basic information about him or herself, the applicant will need to enter information about his or her employer.
Payday loan companies may wish to verify the details of employment directly with the employer. In addition to providing employer contact information, an applicant must also disclose the wages that he or she receives from his or her work. Applicants must list their next pay date.
Using A Payday Loan
One of the biggest advantages of payday loans is quick turnaround time. Most applicants will receive a decision on their application within a few hours of submitting their information.
If approved for a payday loan, applicants are required to sign a loan disclosure statement. In some cases, a payday loan company will require that documents be faxed in order to verify an applicant’s identity and employment.
Funds are generally deposited directly into an individual’s bank account within 24 hours of approval.
Funds from payday loans can be put to any use. Most consumers use these loans to cover emergency expenses or unexpected bills.
Payday loans can provide immediate relief to consumers who need to have emergency repairs made in their homes or to their vehicles.
Such loans are also used by individuals who are experiencing monetary distress and have no way to pay for basic items, such as groceries.
While funds from a payday loan can be used for anything that a consumer needs, they are not designed to address long-term financial distress.
A payday loan generally must be repaid in full on the recipient’s next pay date. Such loans generally carry higher interest rates than traditional bank loans, so it is in a consumer’s best interests to pay them back as quickly as possible.